The main focus of discussions during a courtesy visit by German environment minister Sigmar Gabriel to the Federation of Industry was the presentation of an overview of the Maltese scenario in relation to the environment from an entrepreneurial perspective, as well as the challenges of Malta-based firms operating in this field.

Mr Gabriel was accompanied by his Maltese counterpart, George Pullicino. They were welcomed by Martin Galea, FOI president, and the FOI Environment Committee.

The FOI environment committee, headed by council member Godwin C. Micallef, has over the years studied and discussed various environment-related legislation, such as waste management and alternative energy, with a particular emphasis on compliance costs.

The German minister urged the Maltese business community to be innovative in ways of resolving waste issues and the consumption of resources. He added that as the world population was growing at a very fast pace, enterprises could not continue to consume resources as in the past. Questioning why environmental concerns were being covered by taxes on profits, as in the case of eco-contributions, Mr Gabriel suggested that such taxes should be shifted to the inefficient use of energy and waste materials. In this way, the sensibility of resource consumption would be encouraged, unlike taxes on earnings, which were a disincentive to investment and entrepreneurship.

Minister George Pullicino urged the private sector to come forward and take an active part in the recovery and management of waste. Both ministers felt that government intervention in this field should be limited and that the industry should see this as a business opportunity.

FOI officials agreed that state intervention should be limited to a regulatory body but questioned the government’s involvement as an operator. It was stressed that, with Malta’s size, it was difficult to have more than one scheme, but a framework had to be in place for all operators to work together.